On the Hunt for Outdoors’ Next (Circular) Top Model - Investigating Ex-ante Assessment Tools for Circular Business Models in the Outdoor Fashion Industry

Abstract: Different actors identified the circular economy (CE) as a solution to tackle global environmental challenges and foster sustainable growth. Transitioning to CE requires new circular business models (CBM), which create, capture, and deliver value, based on the principles of the CE. It is, however, a challenging process for companies see through the wide variety of CBM types and to identify which CBM is most suitable to their circumstances. Thus, they are in the need of tools that support them in assessing CBMs prior to implementation. Since the literature on ex-ante CBM assessment frameworks is scarce, this research project aims to investigate, what ex-ante assessment tools exist and how practitioners in the outdoor fashion industry analyse CBMs prior to implementation. It further explores, what aspects practitioners consider when assessing CBMs and to what extent these are covered by the existing ex-ante assessment frameworks from literature. The research project took an inductive approach and used qualitative methods. Twelve interviews with industry practitioners and experts were conducted, the interview findings were coded manually, grouped and a checklist with eight elements that were assessed by practitioners was developed. These included the CBM elements capabilities, financial flows, product suitability, ecosystem partners, customers, markets, environmental dimension and others. The checklist was then applied to three ex-ante CBM assessment frameworks that were identified in the literature review. The results show that none of the identified frameworks addresses all elements of the checklist, nonetheless two of these frameworks cover most elements and can therefore be considered useful to practitioners in the focal industry. This thesis concludes that it is important for practitioners to assess CBMs prior to implementation and evaluate its environmental performance and financial flows to understand if the intended CBM meets its objective of promoting environmental and economic sustainability. It further recommends that more research on ex-ante assessment tools for CBMs is needed and researchers need to develop tools that address all the elements included in the checklist. Moreover, industry practitioners need to assess their CBMs prior to implementing them and share their experience in the industry in a collaborative way.